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Apple TV & Other OTT Set-Top Boxes Doing Better Than Expected 13 May 2015


The Apple TV and similar set-top boxes (STBs) like the Roku and Chromecast are doing much better than had been expected in the past. The reason has to do with the content strategies used.

All this relates to the choices that customers want, the willingness of the set-top box makers to provide it, the box design, by its nature, being amendable to to direct Internet service to the content provider and likely conflicts of interests by the cable/telcos. This competition from the set-top boxes is driving the traditional providers to imagine new services. The report says, “This level of functionality has become a consumer expectation for pay TV services. Some Belgacom, Dish Network, Virgin Media and other pay TV operators have even started providing access to Netflix and other online VOD PPV platform‘s¬†services.”

In January, 2015 Tim Cook told investors that Apple had sold 25 million Apple TVs over the lifetime of the product. Annually, just the device hardware is now a billon dollar business.

With the surge in the popularity of the Apple TV, perhaps all Apple needs to do right now is to solidify its OTT arrangements in lieu of anything more dramatic. It could well be that surging sales combined with a waiting game (and a nascent cord-cutter mentality) will be more effective than any dramatic, ground-breaking product. That is, until the time is right strategically.

Read the entire story here.

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